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Renesas Electronics Revises Full-Year Forecasts

TOKYO --(Business Wire)--

Renesas Electronics Corporation (TSE: 6723), a premier supplier of
advanced semiconductor solutions, today revised its consolidated
financial forecasts for the full year (the period from April 1, 2012 to
March 31, 2013), which it disclosed on December 10, 2012.

1.Revised forecasts for the full-year consolidated financial
results

(For the year ending March 31, 2013)

In millions of yen

NetSales

(Reference)Sales fromSemiconductors

OperatingIncome(Loss)

OrdinaryIncome(Loss)

NetIncome(Loss)

Net Income(Loss) perShare (Yen)

Previous forecasts

(As of December 10, 2012)

820,000

760,000

21,000

10,000

(150,000)

(359.60)

Revised forecasts

(As of February 8, 2013)

770,000

711,000

(26,000)

(34,000)

(176,000)

(421.94)

Increase (decrease)

(50,000)

(49,000)

(47,000)

(44,000)

(26,000)

-

Percent change

(6.1)

(6.4)

-

-

-

-

Reference:

Results for the year

ended March 31, 2012

883,112

786,033

(56,750)

(61,228)

(62,600)

(150.08)

Background to the revision of full-year forecasts

As for the sales forecasts for the fiscal year ending March 31, 2013:
net sales are expected to be 770.0 billion yen, 50.0 billion yen down
from the previous forecast (announced on December 10, 2012); sales from
semiconductors are expected to be 711.0 billion yen, 49.0 billion yen
down from the previous forecast.

Sales from semiconductors for the three months ended December 31, 2012,
were lower than the expectation. This was mainly due to a decline in
demand of semiconductors for automotive and industrial applications
which were expected to recover the demand at certain level in the second
half of the fiscal year ending March 31, 2013 as well as semiconductors
for consumer electronics whose sales were expected to be steady through
a large-scale custom project, influenced by production decrease at
customers due to the prolonged downturn of the global economy. In
addition to this, production decrease of automotive, electronic and
other equipment for China also brought further impact on demand of
semiconductors through the period. Moreover, the Group expects sales
from semiconductors for the three months ending March 31, 2013 also to
fall below its original expectation due to the same factors at the
previous quarter. For these reasons, the Group has made a downward
revision to its forecasts for both net sales and sales from
semiconductors. The Group expects the sales from three product areas;
MCUs, Analog & Power Devices and SoC solutions; to be lower than the
previous forecasts respectively.

As for the earnings forecasts for the fiscal year ending March 31, 2013,
despite the Group's efforts on holding down costs including personnel
expenses, lower profit is expected along with decrease in sales from
semiconductors and production decrease. Therefore, the Group has revised
the earnings forecasts as follow: operating loss is expected to be 26.0
billion yen, 47.0 billion yen down from the previous forecast; ordinary
loss is expected to be 34.0 billion yen, 44.0 billion yen down from the
previous forecast; net loss is expected to be 176.0 billion yen, 26.0
billion yen down from the previous forecast.

The consolidated financial forecasts for the fiscal year ending March
31, 2013 are based on the rate of 83 yen per USD and 109 yen per Euro
for the average of the second half of the fiscal year ending March 31,
2013, 82 yen per USD and 106 yen per Euro for the average of the full
fiscal year ending March 31, 2013.

Details will be explained in Renesas' announcement of financial results
for the third quarter ended December 31, 2012 on February 8, 2013.

Forward-Looking Statements

The statements in this press release with respect to the plans,
strategies and financial outlook of Renesas Electronics and its
consolidated subsidiaries (collectively "we") are forward-looking
statements involving risks and uncertainties. We caution you in advance
that actual results may differ materially from such forward-looking
statements due to several important factors including, but not limited
to, general economic conditions in our markets, which are primarily
Japan, North America, Asia, and Europe; demand for, and competitive
pricing pressure on, products and services in the marketplace; ability
to continue to win acceptance of products and services in these highly
competitive markets; and fluctuations in currency exchange rates,
particularly between the yen and the U.S. dollar. Among other factors,
downturn of the world economy; deteriorating financial conditions in
world markets, or deterioration in domestic and overseas stock markets,
may cause actual results to differ from the projected results forecast.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723), the world's number one
supplier of microcontrollers, is a premier supplier of advanced
semiconductor solutions including microcontrollers, SoC solutions and a
broad-range of analog and power devices. Business operations began as
Renesas Electronics in April 2010 through the integration of NEC
Electronics Corporation (TSE:6723) and Renesas Technology (News - Alert) Corp., with
operations spanning research, development, design and manufacturing for
a wide range of applications. Headquartered in Japan, Renesas
Electronics has subsidiaries in 20 countries worldwide. More information
can be found at www.renesas.com.